Posted: Jan 21, 2011 3:20 PM
Updated: Jan 21, 2011 3:21 PM
BATON ROUGE, La. (AP) - Congress has extended the deadline for tapping into a tax-free hurricane recovery bond program, and two projects already are in line to use up the remaining $301 million.
Applications by Georgia-Pacific and a Covington nursing home for the Gulf Opportunity Zone bond program would exceed the available capacity. The Advocate reports that's what Whit Kling, director of the State Bond Commission, told the commission this week.
Georgia-Pacific is seeking $300 million for its East Baton Rouge Parish pulp and paper mill plant. The nursing home project is asking for $16 million.
The GO Zone program was set to expire at the end of 2010, but Congress extended it to Dec. 31 of this year. GO Zone projects are given a special borrowing status to enable businesses to borrow money more cheaply.